desk
Share
News Topical, Digital Desk : National Stock Exchange (NSE) Chief Executive Officer Ashish Chauhan has warned individual investors against trading in futures and options (F&O) without thorough market knowledge. Speaking to NDTV Profit, he said, "Although I helped introduce derivatives to India, they are very complex. Investors should not enter the derivatives market unless they fully understand it."
He also stated that short-term trading, such as buying in the morning and selling by noon, cannot be considered genuine investing. Recent SEBI data also bears this out. According to a SEBI report released in July, nine out of ten F&O traders incurred losses in FY2025.
Net losses increased by 41%. The total net loss of these traders increased by 41%, from ₹74,812 crore in March 2024 to ₹1.06 lakh crore in the last fiscal year. The report also showed that the number of active individual F&O traders declined from approximately 6.14 million in the first quarter to 4.27 million in the last quarter. The largest decline was seen among traders with a total turnover of less than ₹1 lakh. Chauhan stated that the biggest risk in derivatives trading is leverage. He advised investors to prioritize their financial security through housing, insurance, and fixed deposits, and to invest only a small portion of their total assets in market instruments.
--Advertisement--
